A more than eight-fold surge in the share price of Chinese graphics processing unit (GPU) maker Moore Threads Technology has prompted the newly listed company to warn investors that the gains may have run ahead of fundamentals.
The Beijing-based chipmaker said in a statement to the Shanghai Stock Exchange on Friday that its shares could face the risk of declines after the rapid rally. There was no catalyst that needed to be disclosed and no material change in the company’s fundamentals, it said.
Moore’s stock tumbled by as much as 19 per cent to 758 yuan on Friday on the technology-heavy Star Market. It finished the day 13 per cent lower at 814.88 yuan.
“The company’s shares have had a big swing in recent days,” Moore said. “There may be a situation of overheating on the market and irrational speculation. Investors should be well aware of the trading risk and make decisions prudently and invest rationally.”
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